globalization 2

Manifestation of cultural globalisation

1.1 Economic systems 1.1 Economic systems

a. Economic systems in various countries

• Many countries’ economic systems have the features of a market economy（市場經濟）

• Countries’ domestic economic policies need to follow international standards e.g.: Since China has joined the

World Trade Organisation (WTO), it needs to abolish or amend certain economic laws

b. Transnational institutional arrangements

• Major intergovernmental organisations that deal with global economic affairs formulate economics rules and policies

• E.g.: WTO members need to keep to multilateral trade agreement（多邊貿易協議）

• Multinational corporation（跨國企業） build up cross-border production networks through international division of labour

→ Production globalisation

1.2 Production 1.2 Production

• International division of labour: a country or region specialises in producing a particular product, or in a certain production process

• Production globalisation lead to more cooperation between counties

• Multinational corporations: Mainly deal with high-tech or high value-

added processes Outsource（外判） production processes

which do not require high technology or lower value-added processes to developing countries（發展中國家）

‘ Issue explorer’ p. 20-22

1.1 How do production, international trade and the flow of labour show economic globalisation?

1.1a How do the production modes of multinational corporations show economic globalisation?

a. Rapid development of international trade• International trade: buying and selling of

goods and services between different countries or regions

• WTO promotes trade liberalisation, helps countries abolish or reduce trade barrier （貿易障礙）

• WTO formulates global trade policies and mechanisms

1.3 Trade 1.3 Trade

How do recent trends in international trade show economic globalisation?

• In the past few decades, the world’s total imports and exports increased a lot under globalisation

Value of the word’s total imports and exports (1970-2007)

World Trade Organisation

b. Rapid development of electronic commerce

• Electronic commerce（電子商務）︰ conducting commercial transactions through the Internet. During the process, various sections of commerce and trading are linked to the Internet system

• Contribution of electronic commerce in promoting international trade:

Reduce transaction costs

Increase efficiency

Facilitate cooperation

1.4 Finance 1.4 Finance

• Capital is allocated globally

• Capital is used for financial investment, investment in assets, or setting up enterprises

• It is becoming common for enterprises to raise capital in foreign countries and regions

a. Global flow of international capital

• International capital flow has been speeding up. The scope and amount of capital are also increasing.

Daily average global foreign exchange market turnover (1992-2007)Bank for International Settlements

b. Global development of financial institutions

• Many countries have opened their financial markets

→ Encourages the global development of financial institutions

• Many financial institutions establish branches in other countries, and carry out mergers（合併） and acquisitions（收購）→ Engage in business around the world

• Multinational financial institutions can transfer capital around the world and do business globally

→ Globalisation of financial business

c. Global development of financial markets

• Advanced information technology connects major financial market in the world

• Major financial markets in North America, Asia and Europe are matched in terms of their opening and closing time→ Global financial markets

operate around the clock• The prices of financial products

in different places affect each other

a. Global sales network

• Targets of multinational corporations are no longer limited to their home countries or regions

→ Build global sales networks

1.5 Consumption activities 1.5 Consumption activities

• Multinational corporations promote their brands

→ Expand global sales networks

b. Globalisation of consumption• Multinational corporations expand

global sales network

→ Consumers can buy products from different parts of the world

→ Similar consumption patterns

• Online shopping: cross-border consumption

1.6 Flow of labour 1.6 Flow of labour • Multinational corporations outsource

some of their production processes to foreign enterprises→ Workers have more

opportunities to work for multinational corporations

• Advancement of transportation and communication

→ Encourages flow of labour


1.1c How does the flow of labour illustrate developments in economic globalisation?

• Knowledge-based economy（知識型經濟）→ Countries recruit staff worldwide

→ Cross-border flow of labour becomes more common

→ Workers flow from developing countries to developed countries

• Intergovernmental organisations negotiate about and cooperate on global issues（全球議題）

• International NGOs often organise social movements concerning global issues

2.1 Negotiation of global issues 2.1 Negotiation of global issues

How is political globalisation shown in international cooperation in preventing avian flu?

How is political globalisation shown in international

cooperation in global issues?

• Many countries are members of various intergovernmental organisations

• The UN is one of the largest and influential intergovernmental organisations

Member states cooperate on various global and regional issues

They set global development goals and cooperate to achieve these goals

2.2 Influence of international organisations and multinational corporations on governments

2.2 Influence of international organisations and multinational corporations on governments

• Many countries have established and joined various regional organisations

• Regional organisations are important in coordinating political, economic and environmental work to the regions and to the whole world

• International NGOs:

Set up branches in different places Provide assistance or consultation

services for local governments Put pressure on the international

community

→Influence local affairs of some countries

• Multinational corporations:

Dominate the flow of capital

Influence the domestic affairs or policies of certain countries

• Political values like democracy, human rights and rule of law become widely accepted

• Countries damaging these political values would likely be condemned

2.3 Formation of global political values

2.3 Formation of global political values

• Country’s political decisions and political events: Affect other countries Arouse worldwide

responses

2.4 Global political decisions and events

2.4 Global political decisions and events

• Information and communication technology: A country’s political decisions and political

events can be quickly spread worldwide

2.5 The formulation and implementation of transnational rules

2.5 The formulation and implementation of transnational rules

• Accepted by more and more countries

• Cover more and more areas• Encourage contacts between

countries• Help resolve disputes between

countries

Transnational rules

2.2a Is the Treaty on the Non-Proliferation of Nuclear Weapons (NPT) a fair transnational rule?

2.2 Is the international political arena a place for fair competition?

2.2b Do countries in intergovernmental organisations have equal power?

• Transnational rules emphasise:

Protection of the basic rights of citizens

Protection of the common resources of humankind

Shown in the implementation of human rights laws, laws of wars, etc.

Internationalpolitical arena Fair?

• Implementation of transnational rules

Influenced by countries with stronger economic and political and military power

• Decision-making power of intergovernmental organisations Mainly controlled by developed

countries

3.1 More cultural interactions 3.1 More cultural interactions

• Cultural interaction（文化交流） : when different countries or regions meet, they will learn from each other.

• During this process, different cultures will become more integrated.

Major forms of cultural interactions:

Business

Tourism

• Interpersonal communication:

• Circulation of products

• Information exchange

3.2 Formation of global values and ideas

3.2 Formation of global values and ideas

• Help cultivate and spread a set of values and ideas that are generally accepted globally

• Help people establish the identity of a global citizen

People thinks from a perspective that concerns

the humankind

Civil society（公民社

會） develops

• Culture becomes less connected with place

• Culture spreads to many places

3.3 Changes in the ties between culture and place

3.3 Changes in the ties between culture and place

→ Affects people’s lifestyle or how they think

• Foreign culture integrate into the local culture

→ Makes culture less limited by geographic boundaries

3.4Tensions between cultural homogeneity and heterogeneity

3.4Tensions between cultural homogeneity and heterogeneity

a. Cultural homogeneity

In a society, one or several mainstream cultures may affect most people’s lifestyle and values.

• Spread of American culture Western culture, led by American

culture, has great influence

American culture has spread widely because of the rapid development of America’s cultural industry（文化產業）

• Cultural homogeneity under consumerism Corporations often spread

consumerism

Corporations encourage people to establish similar lifestyle and values, etc.

→ People buy similar goods

• Cultural commodification

An increasing number of cultural items are connected with commercial operations and monetary value

These things gradually lose their original value and meanings

e.g.: Christmas

b. Cultural heterogeneity

In a society, non-mainstream cultures can still exist beside the mainstream culture. There are various kinds of cultural forms in the society.

• Cultural localisation

Localisation（本土化） : When a foreign culture spreads to a society, local people often interpret it in their own way

e.g.: localisation of Buddhism in China

• Glocalisation（全球本土化）

Multinational corporations adjust their products according to local needs so as to cater for local consumers

e.g.: McDonald’s

• Hybridity（混雜） of culture

Regions outside the West integrate foreign culture with local culture

People mix local culture with foreign culture, creating a new culture form

e.g.: fusion cuisine

3.5 Formation of global culture 3.5 Formation of global culture

Global culture（全球文化） : the whole world shares the same set of knowledge, beliefs, art, language, moral concepts, norms and customs

a. Western culture and global culture

• Western culture spreads to other regions and becomes a global culture

• People from regions outside the West increasingly accept Western culture

• e.g.: McDonaldisation（麥當勞化）

• Four elements of McDonaldisation:

• McDonaldisation represents:

Modernised and rational corporate management style

Interpersonal relationships and people’s value are put after business objectives, functions and profits

b. Variations in global culture• Local communities interpret the global

culture in their own way The global culture may be localised or

have new cultural elements added to it A new culture may be formed

→ Interaction between global culture and local culture

→ Variations in global culture



3.1a How does the development of multinational corporations show cultural homogeneity and heterogeneity?

3.1b How does the development of cultural industries show cultural homogeneity and heterogeneity?

3.1 Do cultural homogeneity and heterogeneity coexist under cultural globalisation?